US import prices increase by the most in two years in April
Import prices surged 0.9% last month, the largest increase since March 2022
US IMPORT prices rose by the most in two years in April amid rising costs for energy products and other goods, suggesting that domestic inflation could remain elevated for a while.
Import prices surged 0.9 per cent last month, the largest increase since March 2022, after an upwardly revised 0.6 per cent rise in March, the Labor Department’s Bureau of Labor Statistics said on Thursday (May 16). Economists polled by Reuters had expected import prices, which exclude tariffs, to advance 0.3 per cent, following a previously reported 0.4 per cent gain in March.
In the 12 months through April, import prices accelerated 1.1 per cent, the largest gain since December 2022. Prices rose 0.4 per cent in March, which was the first year-on-year increase since January 2023.
The firmer import price readings cast a shadow on the inflation outlook. Data on Wednesday showed inflation resuming its downward drift after surging in the first quarter, with consumer price growth moderating in April after posting solid gains for two straight months.
Subsiding price pressure together with easing labour market conditions have strengthened expectations that the Federal Reserve will start cutting interest rates in September.
The US central bank has kept its policy rate in the 5.25 per cent-5.50 per cent range since July. It has raised its benchmark overnight interest rate by 525 basis points since March 2022.
Imported fuel prices increased 2.4 per cent in April after vaulting 5.4 per cent in March. The cost of imported food increased 1.7 per cent after rising 1.6 per cent in March. Excluding fuels and food, import prices jumped 0.6 per cent. These so-called core import prices gained 0.1 per cent in March. Core import prices rose 0.4 per cent year-on-year in April.
Prices for imported capital goods edged up 0.1 per cent last month. The cost of motor vehicles, parts and engines rose 0.3 per cent. Imported consumer goods prices inched up 0.1 per cent. REUTERS
Share with us your feedback on BT's products and services
